The Fair Trade Commission announced the measures on 23 at a meeting of the interagency task force on special management of consumer prices at the Government Complex Seoul. The government said repeated collusion by major businesses, including in sugar, has continued, and that stronger economic sanctions are needed to deter repeat offenders.
Under the plan, the FTC will raise the surcharge add-on for repeat violations. Currently, surcharges are increased by 10% to 80% depending on the number of violations over the past five years. The new rule would apply a 100% increase for one repeat offense within 10 years. For self-reporters, the FTC plans to strip immunity or reductions when repeat collusion occurs within five years, and to cut the reduction in half when it occurs within 10 years.
The government also plans corrective steps aimed at preventing recurrence, including requiring companies to build and operate internal monitoring systems such as a compliance program and to report price changes to the FTC for a set period. It said it is also considering an "executive removal order" system that would allow the FTC to demand the dismissal or suspension of executives at companies involved in collusion.
To make damages claims easier, the government said it will revise litigation rules to expand the current class-action system — which now allows only requests to stop illegal conduct — to include claims for damages from major violations such as collusion. In cartel damages suits, it plans to require the FTC to submit relevant materials when a court requests documents needed to prove illegality or the amount of damages.
Market access restrictions would also be tightened for repeat offenders. For industries that require registration or permits under individual laws, the government plans to introduce measures such as canceling registrations or permits or suspending business operations. It said it will expand approaches already used under laws such as the Framework Act on the Construction Industry to major sectors where collusion is frequent.
Limits on participation in public procurement would be strengthened as well. The FTC plans to revise the demerit-point system so it must request that the Public Procurement Service restrict repeat offenders from bidding. It also plans to increase restriction periods by six months each for ringleaders and for other participants.
An FTC official said the government concluded that sanctions for repeat collusion should be strengthened to the level of pushing offenders out of the market to "completely break the chain" of collusion. The official said the FTC plans to move ahead with the measures this year in consultation with relevant ministries.
* This article has been translated by AI.
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